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Top Stocks in Action Today

Jet Airways share price is likely to be in focus after reports stated that the firm is trimming its workforce and operations further as it struggles through its financial crisis.

As per a leading financial daily, at least 15 people at manager or general manager level in departments such as engineering, security and sales have been asked to leave in October. It is also reported that the airline has grounded eight of its planes at the Mumbai and Chennai airports.

IL&FS's Boards Takes First Step Towards Turnaround

The newly-reconstituted board of directors of Infrastructure Leasing and Financial Services (IL&FS) has appointed two financial and transaction advisors (FTAs), as well as a restructuring advisor, for developing and executing a resolution plan for the crisis-hit non-banking financial company.

The board has appointed Arpwood Capital and JM Financial Consultants as FTAs to the IL&FS group, after evaluating proposals from several investment banks and advisory firms.

Alvarez & Marsal has been appointed by the board as the restructuring advisor for the group. The professional services firm, which specialises in turnaround management, was also an advisor to the old board of IL&FS, which was superseded on October 1 after the Ministry of Corporate Affairs moved the National Company Law Tribunal (NCLT) to take over the beleaguered company.

The trouble began when the company defaulted on Rs 12 billion worth of loans to the Small Industries Development Bank of India in August and September and later spiralled into further defaults, including Rs 1.72 billion on inter-corporate deposits, Rs 145.7 million in letters of credit and Rs 1 billion on repayment of principal and interest for a loan facility in October, so far.

A proposed rights issue for IL&FS, decided by the previous board, to raise Rs 45 billion devolved last Friday, creating further uncertainty for the company as it needs around Rs 35 billion in liquidity support. The issue was open from October 5 to October 19.

It must be noted that IL&FS has missed payment on more than five of its obligations since August 2018. It has total debt of US$ 12.6 billion, of which 61% is in the form of loans from banks and other financial systems.

According to Moody's Investor Services, IL&FS's outstanding debentures and commercial paper accounted for 1% and 2%, respectively, of India's domestic corporate debt market as of 31 March 2018. Its bank loans made up about 0.5% to 0.7% of banking system loans.

Stock Market Updates

SHEELA FOAM LTD share price has surged by 5% and its current market price is Rs 1,458. The BSE FMCG is up by 1.2%. The top gainers in the BSE FMCG Index is SHEELA FOAM LTD (up 5.2%). The top losers are GILLETTE INDIA (down 0.3%) and TATA COFFEE (down 0.4%).

ADANI TRANSMISSION share price has surged by 6% and its current market price is Rs 231. The BSE POWER is up by 0.5%. The top gainers in the BSE POWER Index are ADANI TRANSMISSION (up 6.5%) and RELIANCE INFRA (up 6.9%). The top losers are THERMAX LTD (down 0.2%) and TORRENT POWER LTD (down 0.7%).

BLUE STAR share price has surged by 5% and its current market price is Rs 646. The BSE CAPITAL GOODS is up by 0.6%. The top gainers in the BSE CAPITAL GOODS Index are BLUE STAR (up 5.3%) and CG POWER & INDUSTRIAL SOLUTIONS LTD (up 6.8%). The top losers are THERMAX LTD (down 0.5%) and V GUARD IND. (down 0.7%).

DENA BANK share price has surged by 5% and its current market price is Rs 18. The BSE BANKEX is up by 0.1%. The top gainers in the BSE BANKEX Index are DENA BANK (up 5.4%) and YES BANK (up 6.1%). The top losers are SBI (down 0.7%) and AXIS BANK (down 1.1%).

BANK OF MAHARASHTRA share price has surged by 11% and its current market price is Rs 15. The BSE BANKEX is up by 0.4%. The top gainers in the BSE BANKEX Index is BANK OF MAHARASHTRA (up 10.5%). The top losers are SBI (down 0.4%) and AXIS BANK (down 1.0%).

If you turn the clock back, the current macroeconomic climate is nothing new. The markets have seen them all, and every downcycle has been succeeded by gravity defying gains...more so in the small cap space. This time will be no different.

Many investors prefer to invest in offshore funds because of the rupee depreciation and on-going downtrend in the markets, but it is to be invested only when there is no option available to invest in India.

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